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To: Woody_Nickels who wrote (2125)12/11/1997 2:27:00 PM
From: DJBEINO  Read Replies (2) | Respond to of 9582
 
SRAM prices fall 26.6% in '97, but recovery underway, says In-Stat

SCOTTSDALE, Ariz.--Average selling prices on SRAMs have already dropped 26.6% from aggregate ASP levels of $4.92 from 1996, but they appear to have bottomed out at $3.34, according to market researcher In-Stat here today.

In fact, In-Stat forecasts that SRAM ASPs will rise to $4.02 in December. The ASP drop this year will result in a 25.9% decrease in total SRAM revenues to $3.5 billion compared to $4.7 billion in 1996, said Jesse Huffman, senior analyst tracking SRAMs at In-Stat. Too much capacity and the lack of SRAM cache in low-end PCs caused much of the ASP erosion, Huffman said.

But, he added, "1997 shows signs of stabilization for the MOS static RAM markets, with unit shipments increasing slowly, about 1.4% above the 1996 level. A slow recovery starts in 1998. Unit shipments will be up 5.1% with an ASP improvement of approximately 1.3%, resulting in a modest revenue increase of 6.5% to $3.7 billion."

The SRAM market still will be far short of where it was in the peak year, 1995, when total revenues reached $6.1 billion, Huffman noted. In 1999, In-Stat sees worldwide SRAM revenues growing to $4.2 billion.